VanEck’s head of digital assets research, Matthew Sigel, has proposed solving the US debt problem by issuing Bitcoin Bonds (BitBonds). In a post on X, he explained that the US government could use this product to refinance $14 trillion in debt.
According to Sigel, BitBonds is a 10-year hybrid debt instrument with 90% exposure to US Treasury bonds and 10% Bitcoin. He proposed selling the bonds for $100, with proceeds from bond sales used to fund the 10% BTC exposure.
Under the proposal, investors will get all the BTC gains until the annualized yield-to-maturity hits 4.5% on the bond’s purchase value. After that, the government and investors will split the BTC gains equally. Upon maturity,…
